The EIU view

We expect the Nepal Communist Party’s government to remain in power in 2019-20. Balancing ties with both China and India will be crucial to Nepal’s foreign policy; Nepal will benefit from infrastructure-related financial aid from both countries in the forecast period. Real GDP growth will average above 6.6% in 2019-20 and will be supported by robust private consumption and fixed investment. Energy co-operation with neighbouring countries will facilitate energy exports.

Government addresses tax concerns
Despite the removal of vehicle and district export taxes, and business taxes on transactions related to industries and trading activities, the tax system will remain complicated.